CFO Network: Short Term Versus Long Term

Neil Minow of GMI Ratings talks with WSJ's Dennis Berman about how public companies deal with short-term demands of the market while trying to build long term-value.

This transcript has been automatically generated and may not be 100% accurate.

... I ... call lifeline ... when you see many of the same concepts yet is you can say is created value or you could say he's their eyes and boards for ... for a short the wasteland and by the number of short term outcomes ... so what might make sense ... and that the radical ... sense ... and what might seem reasonable Frum of the legal sense all the things that you ... sort of want ... in the yen has created a culture where short-term oriented ... hedge funds another reader types ... can terrorize boards and ... those boards and enhancements ... can you tell looking to get them to have to focus on the short term ... and not on building ... long term but did I miss a time machine that's exactly the argument that hurt in the nineteen eighties when we had green mail payments and things like that ... actually might people mistaking now the largest facial shareholders and who is the largest compressed to show shows the delight ... of you guys ... yet the biggest thing is I love love love in equity capital in the world ... is of pension funds from U S corporations ... so you guys had the biggest shareholders you when you want your shareholders you get the best opportunity in the world you get thirty years from the day don't come Zynga de gets paid out ... to hear the ultimate patient capital the pension funds the ultimate patient capital Trican cannot move from square one to swear to you unless he gets the support not only ... of you guys ... in your pension fund's initial finds ... the foundation for the endowment the sleepy as unstable as conservative investors in the world ... so we're talking about people who are you who who you know how I can has been turned down several times and has been turned down several times ... by ... the shareholders so they are the safety valve for you gotta putting think about the nature of the short-term demands of the market's worst building ... long-term guide a number of board members sign over CEO's I speak to say ... no we're so much in the in the business of ... keeping them happy ... up of ... mitigation mitigation ... as we go through a marker board sessions that ... that that culture that's been treated ... really actually prevents us from having the conversations that you one thing I would be so delighted if you don't wanna be a public company ... go private sphere investors are getting the same people the same as additional investors and believe me you do not want to be accountable to the private equity people ... they will really hold your feet to the fire ... so if you get out if you live long term and this is the naked make the same aren't about the political world if you want ... long term shareholders to bear with you through some tough times ... and talk to them believe me these people are your permanent shareholders to go one percent of everything they can get transaction Kaiser intense ... they cannot sell out to make friends with them when ...